McDonald’s Philippines eyes 65 latest stores with as much as P5-billion investment this yr

MCDONALD’S PHILIPPINES is allocating P3 billion to P5 billion in capital expenditure (capex) to open at the least 65 latest stores this yr, its operator Golden Arches Development Corp. (GADC) said.

Kenneth S. Yang, president and chief executive officer of GADC, announced last week that the brand new McDonald’s stores will probably be strategically positioned across Luzon, Visayas, and Mindanao.

Last yr, McDonald’s Philippines opened 65 stores, bringing its total store network to 792.

The corporate is poised to unveil its 800th store this yr. 

“For this yr, probably, we must always grow in regards to the same as what we did last yr, which is 65 stores. Hopefully, we are going to surpass it,” Mr. Yang told reporters on the sidelines of a media event last week. 

“We see our growth coming from areas outside of the National Capital Region which have rapidly been developing. We’re excited to open more stores and convey McDonald’s closer to more Filipinos,” he said.

Mr. Yang said GADC would likely maintain its current ratio of 55% company-owned stores and 45% franchise branches.

“We are going to proceed to construct latest restaurants all around the Philippines. We grow through our company-owned stores in addition to through our franchise restaurants,” he said. 

“Because the country is growing and progressing in these areas, we are going to go there,” he added. 

The Yang-led GADC recently entered right into a franchise agreement with US-based McDonald’s Corp. for a brand new 20-year franchise term within the Philippines, lasting until 2045. The agreement grants GADC the license to own, develop, and operate the McDonald’s brand within the Philippines. 

GADC Chairman and Founder George T. Yang has held the master franchise for the reason that opening of the primary McDonald’s Philippines store in Manila in 1981. 

In 2005, McDonald’s Philippines became a totally Filipino-owned company, with the Yang family as majority owners and tycoon Andrew L. Tan-led Alliance Global Group, Inc. as its investment partner. — Revin Mikhael D. Ochave